Possible reasons for timeout when trying to access EC2 instance

I had the same problem, and the solution ended up being adding my local machine's IP to the list of inbound rules in the active security group. In the inbound dialog below, enter 22 in the port range, your local IP/32 in the source field, and leave 'custom tcp rule' in the dropdown.

Did you set an appropriate security group for the instance? I.e. one that allows access from your network to port 22 on the instance. (By default all traffic is disallowed.)

Update: Ok, not a security group issue. But does the problem persist if you launch up another instance from the same AMI and try to access that? Maybe this particular EC2 instance just randomly failed somehow – it is only matter of time that something like that happens. (Recommended reading: Architecting for the Cloud: Best Practices (PDF), a paper by Jinesh Varia who is a web services evangelist at Amazon. See especially the section titled "Design for failure and nothing will fail".)